RideNow Group, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
RideNow Group (NASDAQ: RDNW) reported fourth quarter and full year 2025 results on March 9, 2026. Q4 2025 powersports revenue was $256.1M with same-store revenue +6.3% and adjusted EBITDA of $9.7M. Full year 2025 revenue was $1,082.5M (down 10.5%), adjusted EBITDA rose 40.4% to $46.2M, and net loss narrowed to $52.4M. The company ended 2025 with $29.5M cash, $207.6M long-term debt, and ceased vehicle transportation services effective December 31, 2025.
Positive
- Adjusted EBITDA increased 40.4% to $46.2M for full year 2025
- Q4 adjusted EBITDA rose to $9.7M from $2.2M (341% increase)
- Same-store revenue growth in Q4 of 6.3% driven by unit growth
- Powersports gross profit up 10.1% in Q4 to $70.7M
Negative
- Full year revenue declined 10.5% to $1,082.5M
- Net loss remained substantial at $52.4M for 2025
- Operating cash flow fell 84% to $15.9M in 2025
- Unrestricted cash decreased 65.4% to $29.5M as of Dec 31, 2025
Market Reaction – RDNW
Following this news, RDNW has declined 8.36%, reflecting a notable negative market reaction. Our momentum scanner has triggered 4 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $6.14. This price movement has removed approximately $23M from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
RDNW is down 4.28% while several high‑affinity peers like VRM, RMBL, and SDA show notable gains, indicating a company‑specific reaction to the earnings rather than a sector‑wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Quarterly earnings | Positive | +23.9% | Q3 2025 results showed higher EBITDA and narrower net loss in powersports. |
Available earnings history shows that when RideNow reports operational improvement, the stock has previously reacted positively.
Recent news flow for RideNow has centered on operational and financial updates. The key prior earnings release on Nov 04, 2025 highlighted revenue of $281.0M, stronger adjusted EBITDA, and a narrower net loss, which was followed by a 23.95% gain. Today’s fourth‑quarter and full‑year 2025 results continue themes of improving profitability metrics and reduced losses, while also confirming the exit from the vehicle transportation services business to refocus on core powersports operations.
Historical Comparison
Past earnings news on Nov 04, 2025 led to a 23.95% move, so today’s negative reaction to further loss reduction and EBITDA gains contrasts with that prior positive response.
Earnings updates have emphasized powersports profitability and gradual net loss reduction, with this report adding full‑year data and confirming the shutdown of vehicle transportation services.
Market Pulse Summary
The stock is down -8.4% following this news. The decline reflects a divergence from past earnings reactions, given the prior Q3 2025 update produced a 23.95% gain on similar themes of operational improvement. While adjusted EBITDA rose and net losses narrowed, full‑year revenue fell and free cash flow dropped to $10.3M. The exit from vehicle transportation services simplifies the business but also removes a revenue stream, so investors may focus on whether powersports growth and liquidity can offset that shift.
Key Terms
adjusted EBITDA financial
free cash flow financial
non-vehicle net debt financial
non-GAAP financial
AI-generated analysis. Not financial advice.
Growth in Same Store Revenue, Gross Profit and Unit Volume in the Fourth Quarter
Key Fourth Quarter 2025 Highlights (Compared to Fourth Quarter 2024):
- Powersports Revenue totaled
$256.1 million - On a same store sales basis, Powersports Revenue was up
6.3% , driven by a7.7% increase in unit sales - Powersports Gross Profit was
$70.7 million 10.1% - Selling, general & administrative expense was
$64.1 million 90.4% of total Company gross profit, compared to$64.2 million 95.1% of total Company gross profit - Net loss was
$6.4 million $0.8 million $56.4 million $39.3 million - Adjusted EBITDA(1) increased to
$9.7 million $2.2 million
Key Full Year 2025 Highlights (Compared to Full Year 2024)
- Powersports Revenue of
$1,073.9 million 6.7% decrease - On a same store sales basis, Powersports Revenue was down
4.6% , driven by a1.7% decrease in unit sales - Selling, general & administrative expense was
$256.3 million $275.4 million 6.9% - Net loss improved
33.3% to$52.4 million $78.6 million $34.8 million $39.3 million - Adjusted EBITDA(1) increased
40.4% to$46.2 million
Commenting on the quarter, Chairman, Chief Executive Officer and President Michael Quartieri said, "I am proud of our team and the substantial progress we have made on our "back to our roots" strategy, with momentum building through the fourth quarter. These performance gains are a clear indication we are on the right trajectory to deliver sustained growth and value creation for our shareholders."
Fourth Quarter 2025 Results
| |||||
Fourth Quarter | |||||
($ in millions except units) | 2025 | 2024 | YOY Change | ||
Revenue | $ 256.9 | $ 269.6 | (4.7) % | ||
Gross Profit | $ 70.9 | $ 67.5 | 5.0 % | ||
SG&A | $ 64.1 | $ 64.2 | (0.2) % | ||
Adjusted SG&A(1) | $ 59.9 | $ 62.3 | (3.9) % | ||
Operating Income (Loss) | $ 5.4 | $ (41.1) | NM | ||
Net Income (Loss) | $ (6.4) | $ (56.4) | (88.7) % | ||
Adjusted EBITDA(1) | $ 9.7 | $ 2.2 | 340.9 % | ||
Unit Retail Sales: | |||||
New Powersports | 9,924 | 10,217 | (2.9) % | ||
Pre-owned Powersports | 4,125 | 3,925 | 5.1 % | ||
Full Year 2025 Results
| |||||
Full Year | |||||
($ in millions except units) | 2025 | 2024 | YOY Change | ||
Revenue | $ 1,082.5 | $ 1,209.2 | (10.5) % | ||
Gross Profit | $ 298.0 | $ 314.3 | (5.2) % | ||
SG&A | $ 256.3 | $ 275.4 | (6.9) % | ||
Adjusted SG&A(1) | $ 243.8 | $ 270.0 | (9.7) % | ||
Operating Loss | $ (0.2) | $ (15.2) | (98.7) % | ||
Net Income (Loss) | $ (52.4) | $ (78.6) | (33.3) % | ||
Adjusted EBITDA(1) | $ 46.2 | $ 32.9 | 40.4 % | ||
Unit Retail Sales: | |||||
New Powersports | 38,459 | 42,464 | (9.4) % | ||
Pre-owned Powersports | 18,416 | 18,275 | 0.8 % | ||
Full Year | |||||
($ in millions) | 2025 | 2024 | YOY Change | ||
Operating Cash Flow | $ 15.9 | $ 99.4 | (84.0) % | ||
Capital Expenditures | $ (5.6) | $ (2.0) | 180.0 % | ||
Free Cash Flow(1) | $ 10.3 | $ 97.4 | (89.4) % | ||
Dec. 31, | Dec. 31, | ||||
2025 | 2024 | YOY Change | |||
Cash (unrestricted) | $ 29.5 | $ 85.3 | (65.4) % | ||
Long-term Debt, including Current Maturities | $ 207.6 | $ 251.1 | (17.3) % | ||
Principal of Long-Term Debt, including Current Maturities | $ 218.8 | $ 267.4 | (18.2) % | ||
Non-Vehicle Net Debt(1) | $ 189.3 | $ 182.1 | 4.0 % | ||
NM = not meaningful. |
(1) Adjusted SG&A, EBITDA, Adjusted EBITDA, Free Cash Flow, and Non-Vehicle Net Debt are non-GAAP measures. Reconciliations of most directly comparable GAAP to non-GAAP financial measures are provided in accompanying financial schedules. |
Fourth Quarter 2025 — Segment Results
Powersports Segment
Powersports as Reported | Fourth Quarter | ||||
$ in millions, except per unit | 2025 | 2024 | YOY Change | ||
Unit Sales (#) | |||||
Retail | |||||
New(1) | 9,924 | 10,217 | (2.9) % | ||
Pre-owned | 4,125 | 3,925 | 5.1 % | ||
Total retail(1) | 14,049 | 14,142 | (0.7) % | ||
Wholesale | 1,593 | 1,206 | 32.1 % | ||
Total Powersports Unit Sales(1) | 15,642 | 15,348 | 1.9 % | ||
Revenue | |||||
New retail vehicles(1) | $ 133.5 | $ 138.5 | (3.6) % | ||
Pre-owned retail vehicles | 45.8 | 41.3 | 10.9 % | ||
Wholesale vehicles | 4.2 | 6.6 | (36.4) % | ||
Finance & Insurance, net | 24.1 | 22.6 | 6.6 % | ||
Parts, Services, and Accessories | 48.5 | 47.2 | 2.8 % | ||
Total Powersports Revenue(1) | $ 256.1 | $ 256.2 | — % | ||
Gross Profit | |||||
New retail vehicles | $ 17.6 | $ 15.0 | 17.3 % | ||
Pre-owned retail vehicles | 6.6 | 5.1 | 29.4 % | ||
Wholesale vehicles | (0.3) | (0.5) | 40.0 % | ||
Finance & Insurance, net | 24.1 | 22.6 | 6.6 % | ||
Parts, Services, and Accessories | 22.7 | 22.0 | 3.2 % | ||
Total Powersports Gross Profit | $ 70.7 | $ 64.2 | 10.1 % | ||
Powersports GPU(2) | $ 5,032 | $ 4,543 | 10.8 % | ||
(1) Includes a reduction of |
(2) Calculated as total powersports gross profit divided by total retail units sold. |
Same Store Metrics(1) | Fourth Quarter | ||||
$ in millions, except per unit | 2025 | 2024 | YOY Change | ||
Same Store Units | |||||
Retail (#) | |||||
New vehicles | 10,389 | 9,855 | 5.4 % | ||
Pre-owned vehicles | 4,092 | 3,706 | 10.4 % | ||
Total retail | 14,481 | 13,561 | 6.8 % | ||
Wholesale vehicles | 939 | 759 | 23.7 % | ||
Total Same Store Unit Sales | 15,420 | 14,320 | 7.7 % | ||
Same Store Revenue | |||||
New vehicles | $ 138.7 | $ 133.8 | 3.7 % | ||
Pre-owned vehicles | 45.6 | 38.9 | 17.2 % | ||
Total retail | 184.3 | 172.7 | 6.7 % | ||
Wholesale vehicles | 3.1 | 3.8 | (18.4) % | ||
Total Same Store Vehicles | 187.4 | 176.5 | 6.2 % | ||
Finance & Insurance, net | 21.4 | 19.5 | 9.7 % | ||
Parts, Services, and Accessories | 48.1 | 45.6 | 5.5 % | ||
Total Same Store Revenue | $ 256.9 | $ 241.6 | 6.3 % | ||
Same Store Gross Profit | |||||
New | $ 17.4 | $ 14.1 | 23.4 % | ||
Pre-owned | 5.9 | 5.4 | 9.3 % | ||
Total retail | 23.3 | 19.5 | 19.5 % | ||
Wholesale vehicles | (0.3) | (0.8) | (62.5) % | ||
Total Same Store Vehicles | 23.0 | 18.7 | 23.0 % | ||
Finance & Insurance, net | 21.4 | 19.5 | 9.7 % | ||
Parts, Services, and Accessories | 22.4 | 20.5 | 9.3 % | ||
Total Same Store Gross Profit | $ 66.8 | $ 58.7 | 13.8 % | ||
Same Store Powersports GPU(2) | $ 4,613 | $ 4,329 | 6.6 % | ||
(1) Same store metrics in the table above exclude the impact in all periods of fleet sales and stores permanently closed as of December 31, 2025. |
(2) Calculated as total same store powersports gross profit divided by total same store retail units. |
Vehicle Transportation Services Segment
Fourth Quarter | |||||
($ in millions) | 2025 | 2024 | YOY Change | ||
Vehicles Transported (#) | 1,158 | 22,212 | (94.8) % | ||
Vehicle Transportation Services Revenue | $ 0.8 | $ 13.4 | (94.0) % | ||
Vehicle Transportation Services Gross Profit | $ 0.2 | $ 3.3 | (93.9) % | ||
The Company ceased operations of the vehicle transportation services business line effective December 31, 2025.
Balance Sheet, Liquidity and Cash Flow
The Company generated
Investor Conference Call
Company's management will host a conference call to discuss these results on March 9, 2026 at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time). To access the conference call,
About the Company
RideNow Group, Inc. (NASDAQ: RDNW) is a powersports dealership group that partners with virtually every major powersports brand in the world, and we believe our powersports business is the largest powersports retail group in
Forward-Looking Statements
This press release contains "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995, which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those express or implied. Forward-looking statements contained in this press release include, but are not limited to, statements about our future results of operations and financial position, our ability to deliver sustained growth and value creation for shareholders, business strategy and plans, industry and business trends, general macroeconomic and market trends, potential growth opportunities for the business, same store sales trends and momentum, and our objectives for future operations. These risks and uncertainties include, but are not limited to, the following: our ability to grow our business both organically and through strategic acquisitions and to realize our plans and strategies; our ability to acquire sufficient powersports inventory to satisfy consumer demand or our expectations for the business; our dependence on key personnel to operate our business and our ability to retain, attract, and integrate qualified personnel; internal control matters; our reliance on third-party financing providers to finance a substantial portion of our customers' powersports vehicle purchases and to supply extended protection products; the success of our marketing and branding efforts and our ability to attract new customers; adverse conditions affecting one or more of the powersports manufacturers with which we hold franchises, or their inability to deliver a desirable mix of vehicles; our dependence on manufacturer relationships and restrictions imposed by vehicle manufacturers; product liability claims and manufacturer safety recalls; natural disasters, adverse weather, and other disruptive events; our ability to adequately protect our intellectual property; and concentration of leases with entities controlled by our directors; our significant indebtedness and its effect on business flexibility; our need to refinance our indebtedness at or prior to its maturity, and our need for additional financing or capital for acquisitions or unforeseen circumstances; our dependence on floor plan facilities for inventory financing, which may be reduced or terminated; and interest rate risk in connection with floor plan payables and other debt instruments; sensitivity of the powersports industry to unfavorable economic conditions and other demand factors; changes in trade policies, including the imposition of tariffs; operating in a highly competitive market for powersports products and services; potential reduction or discontinuation of manufacturer sales incentive, warranty, or promotional programs; and seasonality and weather trends causing fluctuations in revenue and operating results; our reliance on Internet search engines to drive website traffic; potential disruption in service on our websites; cybersecurity risks and incidents affecting our operations and third-party providers; and compliance with privacy, security, and data processing laws and regulations regarding personal information; potential repeal or weakening of state laws protecting powersports retailers; compliance with a wide range of federal, state, and local laws and regulations; and exposure to various legal proceedings, as well as the factors listed under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's SEC filings, as may be updated and amended from time to time. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in
RideNow Group, Inc. (in millions, except per share amounts)
| |||||||
Fourth Quarter | Full Year | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenue: | |||||||
Powersports vehicles | $ 183.5 | $ 186.4 | $ 778.8 | $ 842.6 | |||
Parts, service and accessories | 48.5 | 47.2 | 197.8 | 206.2 | |||
Finance and insurance, net | 24.1 | 22.6 | 97.3 | 102.4 | |||
Vehicle transportation services | 0.8 | 13.4 | 8.6 | 58.0 | |||
Total revenue | 256.9 | 269.6 | 1,082.5 | 1,209.2 | |||
Cost of revenue: | |||||||
Powersports vehicles | 159.6 | 166.8 | 672.2 | 738.6 | |||
Parts, service and accessories | 25.8 | 25.2 | 105.5 | 111.7 | |||
Vehicle transportation services | 0.6 | 10.1 | 6.8 | 44.6 | |||
Total cost of revenue | 186.0 | 202.1 | 784.5 | 894.9 | |||
Gross profit | 70.9 | 67.5 | 298.0 | 314.3 | |||
Selling, general and administrative | 64.1 | 64.2 | 256.3 | 275.4 | |||
Impairment of intangible assets | 0.8 | 39.3 | 34.8 | 39.3 | |||
Loss (gain) on sale of assets | (1.9) | 0.5 | (1.9) | 0.5 | |||
Depreciation and amortization | 2.5 | 4.6 | 9.0 | 14.3 | |||
Operating income (loss) | 5.4 | (41.1) | (0.2) | (15.2) | |||
Other expense: | |||||||
Floor plan interest expense | (2.5) | (3.3) | (11.0) | (16.0) | |||
Other interest expense, net | (9.4) | (11.9) | (41.5) | (48.1) | |||
Other income | 0.1 | 0.1 | 0.6 | 0.5 | |||
Total other expense | (11.8) | (15.1) | (51.9) | (63.6) | |||
Loss before income taxes | (6.4) | (56.2) | (52.1) | (78.8) | |||
Income tax provision (benefit) | — | 0.2 | 0.3 | (0.2) | |||
Net loss | $ (6.4) | $ (56.4) | $ (52.4) | $ (78.6) | |||
Weighted average shares-basic and diluted | 38.1 | 35.7 | 38.0 | 35.4 | |||
Net loss per share - basic and diluted | $ (0.17) | $ (1.58) | $ (1.38) | $ (2.22) | |||
Common shares outstanding, net of treasury stock, at period end | 38.2 | 37.7 | 38.2 | 37.7 | |||
RideNow Group, Inc. ($ in millions)
| ||||
December 31, | ||||
2025 | 2024 | |||
ASSETS | ||||
Current assets: | ||||
Cash | $ 29.5 | $ 85.3 | ||
Restricted cash | 13.4 | 11.4 | ||
Accounts receivable, net | 28.9 | 30.5 | ||
Inventory | 257.4 | 240.6 | ||
Prepaid expense and other current assets | 5.5 | 3.6 | ||
Total current assets | 334.7 | 371.4 | ||
Property and equipment, net | 60.5 | 63.5 | ||
Right-of-use assets | 150.4 | 157.1 | ||
Franchise rights and other intangible assets | 127.0 | 161.9 | ||
Other assets | 1.0 | 1.3 | ||
Total assets | $ 673.6 | $ 755.2 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Current liabilities: | ||||
Accounts payable and other current liabilities | $ 77.7 | $ 75.4 | ||
Vehicle floor plan notes payable | 218.4 | 209.9 | ||
Current portion of long-term debt | 0.4 | 39.1 | ||
Total current liabilities | 296.5 | 324.4 | ||
Long-term liabilities: | ||||
Long-term debt | 207.2 | 212.0 | ||
Operating lease liabilities | 128.0 | 129.8 | ||
Other long-term liabilities, including finance lease obligation | 54.4 | 52.3 | ||
Total long-term liabilities | 389.6 | 394.1 | ||
Total liabilities | 686.1 | 718.5 | ||
Commitments and contingencies | ||||
Stockholders' equity (deficit): | ||||
Additional paid-in capital | 704.1 | 700.9 | ||
Accumulated deficit | (712.3) | (659.9) | ||
Treasury stock | (4.3) | (4.3) | ||
Total stockholders' equity (deficit) | (12.5) | 36.7 | ||
Total liabilities and stockholders' equity (deficit) | $ 673.6 | $ 755.2 | ||
RideNow Group, Inc. ($ in millions)
| |||
Full Year | |||
2025 | 2024 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | $ (52.4) | $ (78.6) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 9.0 | 14.3 | |
Amortization of debt issuance costs | 8.8 | 9.2 | |
Stock-based compensation | 2.1 | 4.6 | |
Loss on sale of property | (1.9) | 0.5 | |
Impairment on intangible assets | 34.8 | 39.3 | |
Deferred taxes | — | (0.4) | |
Gain on lease termination | (0.4) | (0.9) | |
Interest paid in-kind capitalized to debt principal | 2.5 | 1.5 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 1.6 | 19.8 | |
Inventory | (16.8) | 107.9 | |
Prepaid expenses and other assets | (1.6) | 2.2 | |
Accounts payable and accrued liabilities | 1.7 | 6.2 | |
Other liabilities | 5.0 | 3.1 | |
Floor plan trade note borrowings | 23.5 | (29.3) | |
Net cash provided by operating activities | 15.9 | 99.4 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisitions, net of cash received | — | (0.7) | |
Proceeds from sale of property | 3.1 | 4.0 | |
Purchase of property and equipment | (5.6) | (2.0) | |
Technology development | (0.2) | (0.4) | |
Net cash provided by (used in) investing activities | (2.7) | 0.9 | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayment of debt | (61.1) | (36.0) | |
Proceeds from issuance of debt | 10.0 | — | |
Decrease in borrowings from non-trade floor plans | (15.0) | (53.0) | |
Net proceeds from common stock in rights offering | — | 9.8 | |
Other | (0.9) | (1.4) | |
Net cash used in financing activities | (67.0) | (80.6) | |
NET CHANGE IN CASH AND RESTRICTED CASH | (53.8) | 19.7 | |
Cash and restricted cash at beginning of period | 96.7 | 77.0 | |
Cash and restricted cash at end of period | $ 42.9 | $ 96.7 | |
RideNow Group, Inc.
Non-GAAP Measures
(Unaudited)
($ in millions)
EBITDA and Adjusted EBITDA
We define EBITDA as net loss adjusted to add back interest expense, the impact of income taxes, depreciation and amortization. Adjusted EBITDA further adds back non-cash stock-based compensation, management transition costs, certain litigation expenses not associated with ongoing operations, and other non-recurring costs and credits, as these recoveries, charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of ongoing, future company performance. Adjusted EBITDA is reduced by floor plan interest expense. Our industry typically treats interest expense on vehicle floor plan debt as operating expense, as vehicle floor plan debt is integral to our operations and is collateralized by our powersports vehicles.
Adjusted EBITDA is one of the primary metrics we use to evaluate the financial performance of our business. We present Adjusted EBITDA because we believe it is helpful in highlighting trends in our operating results and it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry.
A reconciliation of net loss to EBITDA and Adjusted EBITDA is provided below:
Fourth Quarter | Full Year | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net loss (GAAP) | $ (6.4) | $ (56.4) | $ (52.4) | $ (78.6) | |||
Add back: | |||||||
Floor plan interest expense | 2.5 | 3.3 | 11.0 | 16.0 | |||
Other interest expense | 9.4 | 11.9 | 41.5 | 48.1 | |||
Depreciation and amortization | 2.5 | 4.6 | 9.0 | 14.3 | |||
Income tax benefit | — | 0.2 | 0.3 | (0.2) | |||
EBITDA (non-GAAP) | 8.0 | (36.4) | 9.4 | (0.4) | |||
Adjustments: | |||||||
Floor plan interest expense | (2.5) | (3.3) | (11.0) | (16.0) | |||
Stock-based compensation | 0.8 | 0.7 | 2.1 | 4.6 | |||
Lease expense associated with favorable related party leases in excess of contractual lease payments | 1.4 | 0.3 | 2.2 | 1.1 | |||
Other non-recurring costs(1) | 3.1 | 1.6 | 9.5 | 4.2 | |||
Gain on sale of assets | (1.9) | — | (1.9) | — | |||
Management transition costs | — | — | 1.1 | 0.1 | |||
Impairment of intangible assets | 0.8 | 39.3 | 34.8 | 39.3 | |||
Adjusted EBITDA (non-GAAP) | $ 9.7 | $ 2.2 | $ 46.2 | $ 32.9 | |||
_____________________________ |
(1) Other non-recurring costs include one-time expenses incurred, such as legal costs not part of ongoing operations and termination costs for leases and other services no longer needed in the business. |
RideNow Group, Inc.
Non-GAAP Measures
(Unaudited)
($ in millions)
Free Cash Flow
We define Free Cash Flow as cash flows from operating activities less capital expenditures of property and equipment (not including acquisitions). We utilize Free Cash Flow when assessing the Company's sources of liquidity and capital resources. We believe that Free Cash Flow is helpful in understanding the Company's capital requirements and provides an additional means to reflect the cash flow trends in the Company's business. We believe Free Cash Flow is useful to investors because it represents the cash that our operating businesses generate, before taking into account non-operational cash movements. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, we think it is important to evaluate Free Cash Flow along with our consolidated statement of cash flows.
A reconciliation of cash flows from operating activities to Free Cash Flow is provided below:
Full Year | |||
2025 | 2024 | ||
Cash flows from operating activities (GAAP) | $ 15.9 | $ 99.4 | |
Less: | |||
Capital expenditures | (5.6) | (2.0) | |
Free Cash Flow (non-GAAP) | $ 10.3 | $ 97.4 | |
Non-Vehicle Net Debt
We define Non-Vehicle Net Debt as total principal of long-term debt, including current maturities, less unrestricted cash. Our restricted cash is principally related to vehicle floor plan debt and is therefore not part of this calculation. Vehicle floor plan debt and finance lease obligations are not included in this measure. We believe that Non-Vehicle Net Debt is useful to investors and analysts as a measure of our financial position. We use Non-Vehicle Net Debt to monitor and compare our financial position from period to period.
A reconciliation of total long-term debt, including current maturities to Non-Vehicle Net Debt is provided below:
As of Dec. 31, 2025 | As of Dec. 31, 2024 | ||
Long-term debt, including current maturities (GAAP) | $ 207.6 | $ 251.1 | |
Add back: unamortized debt discount and issuance costs | 11.2 | 16.3 | |
Principal of long-term debt, including current maturities | 218.8 | 267.4 | |
Less: unrestricted cash | (29.5) | (85.3) | |
Non-Vehicle Net Debt (non-GAAP) | $ 189.3 | $ 182.1 |
RideNow Group, Inc.
Non-GAAP Measures
(Unaudited)
($ in millions)
Adjusted SG&A
We define Adjusted SG&A as SG&A adjusted to deduct transaction costs, certain litigation expenses not associated with our ongoing operations, management transition costs and other non-recurring costs, as these charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of the ongoing run rate of our SG&A. We use Adjusted SG&A to measure our progress toward achieving our goals. Adjusted SG&A is a non-GAAP financial measure and should not be used as a replacement for SG&A reported in compliance with GAAP. Adjusted SG&A has certain limitations in that it does not represent the total SG&A for the period. Therefore, we believe it is important to evaluate Adjusted SG&A along with SG&A and our consolidated statements of operations.
A reconciliation of SG&A to Adjusted SG&A is below:
Fourth Quarter | Full Year | ||||||
2025 | 2024 | 2025 | 2024 | ||||
SG&A (GAAP) | $ 64.1 | $ 64.2 | $ 256.3 | $ 275.4 | |||
% of Gross Profit | 90.4 % | 95.1 % | 86.0 % | 87.6 % | |||
Adjustments: | |||||||
Lease expense associated with favorable related party leases in excess of contractual lease payments | $ (1.4) | $ (0.3) | $ (2.2) | $ (1.1) | |||
Other non-recurring costs(1) | (2.8) | (1.6) | (9.2) | (4.2) | |||
Management transition costs(2) | — | — | (1.1) | (0.1) | |||
Adjusted SG&A (non-GAAP) | $ 59.9 | $ 62.3 | $ 243.8 | $ 270.0 | |||
% of Gross Profit (non-GAAP) | 84.5 % | 92.3 % | 81.8 % | 85.9 % | |||
(1) Other non-recurring costs include one-time expenses incurred, such as legal costs not part of ongoing operations and termination costs for leases no longer needed in the business. |
(2) Severance and other charges associated with the separation of former executives. |
RideNow Group, Inc.
Supplementary Data
(Unaudited)
Key Term Loan Credit Agreement Covenant Compliance Calculations as of December 31, 2025(1)
Consolidated Total Net Leverage Ratio | 3.5x | |
Covenant | Maximum Allowed | 6.5x |
Consolidated Senior Secured Net Leverage Ratio | 3.3x | |
Covenant | Maximum Allowed | 6.25x |
(1) Calculated in accordance with our credit agreement. |
RideNow Group, Inc. Supplementary Schedule (Unaudited) ($ in millions except units and per unit)
| |||||||||||||||||||||||||||||
2025 | 2024 | 2025 v 2024 % Change | |||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |||||||||||||||
Same Store Units(1) | |||||||||||||||||||||||||||||
Retail - New: | |||||||||||||||||||||||||||||
New retail | 7,760 | 10,120 | 9,164 | 10,389 | 37,433 | 9,980 | 11,541 | 9,380 | 9,855 | 40,756 | (22.2) % | (12.3) % | (2.3) % | 5.4 % | (8.2) % | ||||||||||||||
Pre-owned retail | 4,118 | 5,033 | 4,504 | 4,092 | 17,747 | 4,607 | 4,432 | 4,117 | 3,706 | 16,862 | (10.6) % | 13.6 % | 9.4 % | 10.4 % | 5.2 % | ||||||||||||||
Total same store retail | 11,878 | 15,153 | 13,668 | 14,481 | 55,180 | 14,587 | 15,973 | 13,497 | 13,561 | 57,618 | (18.6) % | (5.1) % | 1.3 % | 6.8 % | (4.2) % | ||||||||||||||
Wholesale | 544 | 808 | 921 | 939 | 3,212 | 223 | 273 | 540 | 759 | 1,795 | 143.9 % | 196.0 % | 70.6 % | 23.7 % | 78.9 % | ||||||||||||||
Total same store units | 12,422 | 15,961 | 14,589 | 15,420 | 58,392 | 14,810 | 16,246 | 14,037 | 14,320 | 59,413 | (16.1) % | (1.8) % | 3.9 % | 7.7 % | (1.7) % | ||||||||||||||
Same Store Revenue(1) | |||||||||||||||||||||||||||||
New vehicles | $ 117.1 | $ 148.5 | $ 137.6 | $ 138.7 | $ 541.9 | $ 147.7 | $ 168.1 | $ 141.0 | $ 133.8 | $ 590.6 | (20.7) % | (11.7) % | (2.4) % | 3.7 % | (8.2) % | ||||||||||||||
Pre-owned vehicles | 46.1 | 56.4 | 51.3 | 45.6 | 199.4 | 51.3 | 50.4 | 46.9 | 38.9 | 187.5 | (10.1) % | 11.9 % | 9.4 % | 17.2 % | 6.3 % | ||||||||||||||
Total retail | $ 163.2 | $ 204.9 | $ 188.9 | $ 184.3 | $ 741.3 | $ 199.0 | $ 218.5 | $ 187.9 | $ 172.7 | $ 778.1 | (18.0) % | (6.2) % | 0.5 % | 6.7 % | (4.7) % | ||||||||||||||
Wholesale vehicles | 2.0 | 2.6 | 2.1 | 3.1 | 9.8 | 4.7 | 4.1 | 4.2 | 3.8 | 16.8 | (57.4) % | (36.6) % | (50.0) % | (18.4) % | (41.7) % | ||||||||||||||
Total Same Store Vehicles | $ 165.2 | $ 207.5 | $ 191.0 | $ 187.4 | $ 751.1 | $ 203.7 | $ 222.6 | $ 192.1 | $ 176.5 | $ 794.9 | (18.9) % | (6.8) % | (0.6) % | 6.2 % | (5.5) % | ||||||||||||||
Finance & Insurance, net | 19.1 | 24.7 | 22.2 | 21.4 | 87.4 | 23.3 | 24.6 | 21.1 | 19.5 | 88.5 | (18.0) % | 0.4 % | 5.2 % | 9.7 % | (1.2) % | ||||||||||||||
Parts, Services, and Accessories | 44.6 | 50.7 | 48.9 | 48.1 | 192.3 | 50.1 | 54.6 | 47.3 | 45.6 | 197.6 | (11.0) % | (7.1) % | 3.4 % | 5.5 % | (2.7) % | ||||||||||||||
Total | $ 228.9 | $ 282.9 | $ 262.1 | $ 256.9 | $ 1,030.8 | $ 277.1 | $ 301.8 | $ 260.5 | $ 241.6 | (17.4) % | (6.3) % | 0.6 % | 6.3 % | (4.6) % | |||||||||||||||
Same Store Gross Profit(1) | |||||||||||||||||||||||||||||
New | $ 16.3 | $ 22.0 | $ 18.5 | $ 17.4 | $ 74.2 | $ 18.3 | $ 21.3 | $ 15.6 | $ 14.1 | $ 69.3 | (10.9) % | 3.3 % | 18.6 % | 23.4 % | 7.1 % | ||||||||||||||
Pre-owned | 7.7 | 10.5 | 8.3 | 5.9 | 32.4 | 9.7 | 8.8 | 6.4 | 5.4 | 30.3 | (20.6) % | 19.3 % | 29.7 % | 9.3 % | 6.9 % | ||||||||||||||
Total retail | $ 24.0 | $ 32.5 | $ 26.8 | $ 23.3 | $ 106.6 | $ 28.0 | $ 30.1 | $ 22.0 | $ 19.5 | $ 99.6 | (14.3) % | 8.0 % | 21.8 % | 19.5 % | 7.0 % | ||||||||||||||
Wholesale vehicles | (0.1) | (0.1) | (0.2) | (0.3) | (0.7) | (0.4) | (0.1) | (0.6) | (0.8) | (1.9) | 75.0 % | — % | 66.7 % | 62.5 % | 63.2 % | ||||||||||||||
Total Same Store Vehicles | $ 23.9 | $ 32.4 | $ 26.6 | $ 23.0 | $ 105.9 | $ 27.6 | $ 30.0 | $ 21.4 | $ 18.7 | $ 97.7 | (13.4) % | 8.0 % | 24.3 % | 23.0 % | 8.4 % | ||||||||||||||
Finance & Insurance, net | 19.1 | 24.7 | 22.2 | 21.4 | 87.4 | 23.3 | 24.6 | 21.1 | 19.5 | 88.5 | (18.0) % | 0.4 % | 5.2 % | 9.7 % | (1.2) % | ||||||||||||||
Parts, Services, and Accessories | 20.8 | 24.3 | 23.1 | 22.4 | 90.6 | 22.4 | 25.4 | 21.7 | 20.5 | 90.0 | (7.1) % | (4.3) % | 6.5 % | 9.3 % | 0.7 % | ||||||||||||||
Total Same Store Gross Profit | $ 63.8 | $ 81.4 | $ 71.9 | $ 66.8 | $ 283.9 | $ 73.3 | $ 80.0 | $ 64.2 | $ 58.7 | $ 276.2 | (13.0) % | 1.8 % | 12.0 % | 13.8 % | 2.8 % | ||||||||||||||
Same Store Retail GPU(2) | $ 5,371 | $ 5,372 | $ 5,260 | $ 4,613 | $ 5,145 | $ 5,025 | $ 5,008 | $ 4,757 | $ 4,329 | $ 4,794 | |||||||||||||||||||
(1) For all periods shown in the table above, same store data excludes fleet sales and the results of stores permanently closed as of December 31, 2025. |
(2) Calculated as Same Store Gross Profit divided by same store total retail units sold. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/ridenow-group-inc-reports-fourth-quarter-and-full-year-2025-financial-results-302708563.html
SOURCE RideNow Group Inc.
FAQ
What drove RideNow (RDNW) same-store revenue growth in Q4 2025?
How did RideNow (RDNW) adjusted EBITDA perform for full year 2025?
Why did RideNow (RDNW) report a net loss in 2025 and how large was it?
What liquidity and debt position did RideNow (RDNW) report at year-end 2025?
What operational changes did RideNow (RDNW) make to its business lines in 2025?
